Stratabound set to ship first ore from CNE mine

Calgary-based Stratabound Minerals (ASE) expects to be shipping its first truckload of ore from the Captain North Extension (CNE) lead-zinc deposit in New Brunswick by the end of August.

“Depending on Hurricane Bob, we anticipate starting our blastholes and trucking our ore to Heath Steele within the next week,” said Stratabound President Stanley Stricker.

Heath Steele, which produced about 945,500 tons of copper-lead-zinc-silver ore in 1990, is a joint venture between Noranda (TSE) and its subsidiary Brunswick Mining and Smelting (TSE).

The first shipment will consist of 15,000 tons of CNE ore, and will take about two weeks to reach Heath Steele’s mill near Bathurst, N.B. Although subsequent loads will depend on the mill’s production schedule and capacity, the daily rate is expected to average 200-300 tons over the mine’s 2-year life.

CNE contains an open pit reserve of 228,812 tons averaging 7.38% zinc, 2.76% lead and 2.68 oz. silver per ton, based on a cutoff grade of 8% combined lead-zinc. An out-of-date reserve, based on a 6% cutoff, was included in an article published in The Northern Miner on Aug. 5.

The CNE ore, which has already been tested at the mill, will be mixed with Heath Steele’s ore to produce combined concentrates. Strata-bound will receive an undisclosed amount for its share of concentrates based on average London Metal Exchange prices. The junior company grossed $1-1.5 million on the 12,000-ton, high-grade bulk sample processed last October. At the beginning of this month, Teck (TSE) agreed to take an option on Strata-bound’s extensive claim holdings in New Brunswick. In order to earn a 51% interest in 5,920 acres, Teck has agreed, among other things, to spend $3 million over four years and pay Stratabound $50,000 on signing. The CNE open pit reserves are not included in the agreement.